Question

Physician assistants (PAs) have argued that they can provide as much as 70% of the same medical services provided by primary care physicians at a much lower cost. What are reasons that government regulations limit their ability to work independently of physicians? What would happen to the level of competition in the physician services market if the laws that limit the activities of physician assistants were eliminated? Explain in 150 words no duplicate answers.

Answer 1

Ans) The level of competition would increase because the physician assistants would be able to perform most of the tasks the physician can do at a lower price
- This would cause the overall price to go down

- Greater supply of physicians will make the curve go from S0 to S1. so supply increases while price drops. Physicians try to induce demand so quantity increases and so does the price. As a will to mitigate physicians, they induce demand and raise prices.